A new generation of real-estate–backed digital asset funds is testing an alternative to traditional crypto treasuries
A growing segment of the investment world is turning to real estate to reshape how digital assets are held and financed. The latest example comes from investor Grant Cardone, whose firm is rolling out a hybrid model that blends income-producing multifamily properties with significant Bitcoin allocations — a structure positioned as a challenge to today’s digital asset treasury companies.
Real estate income meets Bitcoin volatility
Cardone’s newest multifamily fund includes a recently acquired 366-unit complex valued at roughly $235 million. Alongside the property, the fund carries $100 million in Bitcoin, creating an investment model designed to lean on steady rental income while gaining asymmetric upside from BTC.
According to Cardone, this structure allows the portfolio to grow its digital asset holdings organically. “This asset will generate about $10 million in net operating income annually, and that cash flow lets us consistently accumulate more Bitcoin,” he said. He described the approach as “a real business with real tenants,” contrasting it with crypto treasuries that rely solely on market appreciation.
One person familiar with hybrid property funds said the model offers “a bridge between traditional income assets and high-volatility digital assets,” adding that long-term leases can provide built-in stability as firms layer on Bitcoin exposure.
Pressure builds on digital asset treasuries
The hybrid model emerges at a time when many crypto treasury companies are under scrutiny for structural weaknesses. These firms typically raise capital through debt or equity and use the proceeds to buy Bitcoin, but they lack operational revenue to support ongoing purchases or debt servicing.
Venture firm Breed warned that treasury companies without underlying cash-flow businesses are the most vulnerable in a market downturn. When the price premium above net asset value — known as mNAV — contracts, these firms lose access to inexpensive financing. As one analyst noted, “When mNAV drops to one or below, leverage stops working — and companies dependent on debt face immediate strain.”
In severe cases, overextended treasuries may be forced to sell Bitcoin to meet obligations, a cycle that can amplify price declines.
A new direction for REIT-style structures
Cardone believes hybrid funds may open the door for future REIT-like products that combine physical assets with digital asset reserves. The concept relies on the idea that housing demand is non-discretionary, giving these funds stable cash flow to continually build digital asset positions.
Whether this model becomes mainstream will depend on investor appetite for blending conservative income assets with the volatility of Bitcoin — a pairing that could redefine how institutional capital approaches digital asset exposure.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.